Summary:
Oil prices dipped slightly on Wednesday ahead of the US election, after rising 2% as OPEC+ delayed production hikes, easing supply concerns.
Oil prices eased slightly on Wednesday in the countdown to US presidential election, after rising more than 2% in the past session as OPEC+ delayed plans to hike production in December and eased supply concerns.
OPEC Secretary General Haitham Al Ghais stated that member countries remain optimistic about oil demand in both the short and long term, even as tensions rise with Iran vowing retaliation for recent Israeli missile strikes.
According to a Reuters survey, OPEC oil production rebounded in October, largely thanks to Libya resuming output. However, gains were limited by Iraq’s continued efforts to stick to its production quotas. Meanwhile, a tropical storm in the Gulf of Mexico, expected to strengthen into a Category 2 hurricane, could temporarily reduce U.S. oil production by around 4 million barrels.
In China, traditional commodity producers are still feeling the impact of the economic slowdown, with oil refiners facing particularly steep losses. Many refiners are cutting production due to weaker fuel demand, driven partly by the country’s rapid shift to electric vehicles. September marked the sixth month in a row of reduced processing for China’s oil sector.
Brent crude found solid support around $70 and was set to test the initial resistance at $76 which is followed 200 SMA – the key level to negate the ongoing downtrend.
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